The US Department of Defense announced on February 14 that it had added nine Chinese companies to its sanctions list with links to the Chinese military, including aircraft maker Comac of China and mobile phone maker Xiaomi.
China’s smartphone shipments in 2020 will drop 11 percent year-on-year to 330 million units, according to a global smartphone market research report for the fourth quarter of 2020 released by global technology market analysis and market consulting firm Canalys1 on Thursday.Xiaomi shipped 39.8 million units in the Chinese mainland smartphone market in 2020, with a year-on-year growth of 3% and a market share of 12%, ranking the fourth place and becoming the only company with a positive growth in shipments in the Chinese market with Apple.
Chinese smartphone maker Xiaomi has filed a legal complaint against the US Department of Defense and Treasury on January 29, according to publicly available court records, huanqiu.com reported on Monday citing foreign media sources.
Xiaomi has asked a US court to declare the US government’s decision to place it on an investment “blacklist” illegal, naming defence secretary Lloyds Austin and Treasury secretary JanetYellen as defendants, foreign media reported.
‘If the restrictions go into effect, Xiaomi faces imminent, serious and irreparable harm,’ the company said in a filing with the U.S. District Court in Columbia.
On January 14, the U.S. defense department announced that it will 9 companies listed in the so-called “of the communist party of China got the enterprise” list, the nine companies including comac, millet group, the micro semiconductor (AMEC), laundry list (LKCO), Beijing zhongguancun development investment center, high clouds semiconductor (GowinSemiconductor), grand China aviation (GrandChinaAir), in the target language (GTCOM) and cnac (CNAH).
If the ban goes into effect, US investors will not be able to invest in or buy shares in the companies and will have until November 11 to sell their shares in the blacklisted companies.
In addition, the potential risks of being included in the list include further investigation or subsequent restrictions imposed by the United States, enhanced export control and economic sanctions, and possible obstruction of other US-related businesses.